It is known to prepare thermoplastic polyurethanes directly in the form of powders by reacting polyether or polyester glycols and low molecular weight diols with diisocyanates in an inert solvent in which one of the reactants is immiscible and is emulsified by a surface active agent. These powders are useful as powder coatings and fabric adhesives, for example, and avoid the problems associated with solvents, but have the disadvantage that their processing temperatures are close to the temperature at which urethanes degrade. Having already attained their ultimate molecular weight, which must be relatively high to provide good physical properties, these thermoplastic polyurethanes have high melt viscosities at the maximum temperatures at which they can be processed. In many instances this high melt viscosity prevents proper flow during fusion of the powder. Thus a need exists for a powdered polyurethane which exhibits lower melt viscosities at temperatures sufficiently below the point of polymer degradation to permit less critical control of time/temperature cycles during fusion and still provide good physical properties.